Haas spoke to hundreds of Swiss and Iranian business people at a Zurich hotel on Thursday.

The
Swiss Federal Department of Foreign Affairs (FDFA) said the
"questionable cartoon" was used without its knowledge. "The FDFA regrets
the use of this cartoon and considers it tasteless," it said in a
statement.

Israel also took issue with Haas' upbeat characterization of Iran.

"What
happened (in Zurich) proves that the nuclear deal ... created an
unbridled incentive to pour billions of dollars into Iran without it
being required to changes its policy of terror and belligerence," said
Emmanuel Nahshon, spokesman for the Foreign Ministry in Jerusalem.

"Greed begets attempts to grovel before the Iranian regime, with attendant loss of basic sense and self-respect."

Haas'
address came as Europeans race back to Iran, whose markets and major
reserves of oil and gas will be much easier to tap once sanctions are
lifted under a global deal struck last month.

In his speech, Haas
called Iran the "pole of stability in a very, very unsafe region." He
urged Swiss businesses not to delay their endeavors in Iran, a
potentially lucrative market with a population of 80 million.

"Ambassador
Haas did not intend to insult anybody with the cartoon," the FDFA said.
"If that is the case, however, he regrets it and seeks the pardon of
everyone who could have felt insulted."

The cartoon, a commentary
on responses to the deal Tehran struck on July 14 with world powers to
limit its nuclear work in return for sanctions relief, shows a pair of
doves with US and Iranian flags on their chests atop Netanyahu's head.

Netanyahu opposes the pact, saying it will be ineffective and allow Israel's enemy to expand its regional influence.

At Thursday's event, Haas displayed the image of the cartoon on an enormous screen, under the title "Iran: now or never."

"What this picture shows is, I think now is really the opportunity to assess the market," he said.